WE WANT IN, TOO… San Diego has got a lot going on—it’s always attracted tourists from all over and for good reason. The vibrancy of its culture, the music festivals and fairs, top-ranking restaurants, and out door activities keep a steady stream of visitors all year-round. It’s a hotspot and we know, you want to get in on the investments. It’s a hot city with some unfortunately hot prices too. To help you out, we’ve curated a short list of the most affordable San Diego neighborhoods to invest in.
Using Mashvisor’s investment property calculator, we’ve generated the numbers for properties in the San Diego real estate market.
1. University Heights
The neighborhood doesn’t actually feature a university although it’s a hub for millennials and visiting young professionals. University Heights is a charming area offering craftsman bungalows, eateries, coffee houses, and bars—all making for a very laidback part of the city. To add to the charm, there is an ostrich farm and public garden located in the northern part of the city. Nestled closely to other vibrant parts of San Diego, University heights is a great area offering both a peaceful reserve from the city while providing easy access to busier parts areas.
The median property price in University Heights is one of the lowest medians of any neighborhood in San Diego. With particularly strong CoC returns and cap rates, it’s a great area to invest in an Airbnb rental property. Furthermore, the average occupancy rate promises a solid influx of residents. The median property prices, CoC return, and cap rate make University Heights one of the most affordable San Diego neighborhoods to invest in.
- Median Property Price: $480,000
- Traditional Rental Income: $1490
- Airbnb Rental Income: $2,459.46
- Traditional CoC Return: 04%
- Airbnb CoC Return: 25%
- Traditional Cap Rate: 59%
- Airbnb Cap Rate: 94%
- Airbnb Occupancy Rate: 47%
This neighborhood is one of the most inviting and friendly neighborhoods in San Diego. It’s just a few miles from downtown but offers enough to keep you entertained there alone. With local, independent restaurants, shops, bars, and markets, the city features something for everyone. The colorful culture attracts tourists, making Airbnb a great investment in this neighborhood.
The property prices make this neighborhood one of the most affordable in the city—just after University Heights which borders Hillcrest, opening onto its main street. The CoC return, Cap rates, and occupancy rates are high for Airbnb rental properties in the area. This makes it a profitable and one of the most affordable San Diego neighborhoods to invest in.
- Median Property Price: $522,000
- Traditional Rental Income: $1,658.44
- Airbnb Rental Income: $2,353.12
- Traditional CoC Return: 25%
- Airbnb CoC Return: 78%
- Traditional Cap Rate: 59%
- Airbnb Cap Rate: 41%
- Airbnb Occupancy Rate: 56%
3. East Village
San Diego’s East Village is the largest neighborhood in San Diego and one the most affordable to invest. Made up of artists’’ studio and galleries, restaurants and shops, the East Village attracts urbanites and millenials from all over. The neighborhood is projected to keep growing as well, with a law school, and pedestrian bridge connecting San Diego Bay and Balboa Park under construction. Both San Diego City College and the New School of Architecture are in the East Village, meaning the neighborhood is brimming with college students looking for a place to live.
The population of university students in the East Village make investing in traditional rental properties a highly profitable one. This is recommended route for investing in the East Village. With the attractions in the area, Airbnb is also an investment strategy to consider as the CoC returns and cap rates are particularly strong. The only catch is that the occupancy rates for Airbnb rental properties in the East Village are low compared to other neighborhoods. This shouldn’t discourage you however, as there are measures you can take to ensure a high occupancy rate for your Airbnb rental property.
That aside, the East Village remains one of the most affordable San Diego neighborhoods to invest in. Take a look at the figures:
- Median Property Price: $550,000
- Traditional Rental Income: $2,467.08
- Airbnb Rental Income: $1,703.31
- Traditional CoC Return: 3%
- Airbnb CoC Return: 16%
- Traditional Cap Rate: 64%
- Airbnb Cap Rate: 45%
- Airbnb Occupancy Rate: 3%
HOW TO INVEST
Once you decide to start looking for properties to buy, Mashvisor is here to provide you with the data. Through real estate analysis, Mashvisor allows you to view thousands of listings in different states, cities, and neighborhoods across the US in a matter of minutes.
In San Diego, we give you listings from various neighborhoods, letting you know exactly the potential income of all traditional and Airbnb properties in the area. Maximize your returns by finding our where the highest performing neighborhoods are. Gain an in-depth understanding about property value and determine your return on investment, knowing which investments in San Diego are good ones to make. We make it easier for you and deliver the real estate investment analytics on one platform so that you can make informed investment decisions. Finding properties in the most affordable San Diego neighborhoods to invest in has never been so easy.